Newbury tech company Gamma to buy Starface for £165M

Newbury-based tech business Gamma Communications has reached agreement to buy the German comms company Starface for around £165 million.
Gamma said that Germany holds strategic importance for Gamma, as it represents the largest, and growing, cloud PBX market in Europe, with significantly lower cloud penetration in a larger SME market than the UK.
It said: "The acquisition of STARFACE delivers on our strategy to establish a new anchor in the European business, alongside our well-established UK business."
Gamma wants to challege telecommunication providers Deutsche Telekom and Vodafone Germany, in the German cloud communication market.
Gamma entered the German market through the acquisition of HFO in July 2020. In September 2024, Gamma further expanded its presence through the acquisition of Placetel, a German Cloud PBX provider, enabling German companies to buy Cisco Collaboration solutions both digitally and through local partners.
Founded in 2005, STARFACE is a market leader in the provision of proprietary business communication and collaboration software solutions to fit the needs of the German market.
The company predominantly serves SME businesses in Germany, as well as enterprises and the public sector via its nationwide channel partner network, which also covers Austria and Switzerland. Headquartered in Karlsruhe, Southwest Germany, the business has additional offices in Munich and Starnberg and employs around 260 people. An experienced management team is led by founder Florian Buzin, who will continue to lead the business.
Andrew Belshaw, Chief Executive, Gamma, said: "This acquisition marks a significant milestone for Gamma as we further strengthen our position in Europe's cloud communications market.
"By combining STARFACE's strong partner ecosystem and technical expertise with Gamma's established connectivity capabilities, we're delivering unmatched value to our customers and partners. Together, we're not only strengthening our position in the German market but also shaping the future of business communications for SMEs across Europe."
Florian Buzin, Chief Executive and founder, STARFACE, added: "We are thrilled to join forces with Gamma, a company that shares our vision of empowering SMEs with cutting-edge communication solutions.
"This partnership builds on STARFACE's legacy of innovation and channel excellence while unlocking new opportunities for growth and collaboration. Together, we are in an excellent position to lead the next chapter of cloud communications in Germany and beyond."